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The Silicon Valley Bank UK Limited Compensation Scheme Order 2024

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2024, ISBN 9780348265217

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Order laid before Parliament under section 62(2) of the Banking Act 2009, for approval by resolution of each House of Parliament.

Banks And Banking

Made ***

Coming into force in accordance with article 1(2)

The Treasury make this Order in exercise of the powers conferred by sections 49(2), 50(2), 61(2) and 259(1) of the Banking Act 2009f1.

A draft of this Order has been laid before Parliament and approved by a resolution of each House of Parliament in accordance with section 62(2) of the Banking Act 2009.

Annotations to the whole text

Footnotes

f1

2009 c. 1.

Contents

  1. 1Citation, commencement, extent and interpretation
  2. 2Determination of amount of compensation
  3. Signature
  4. Explanatory note

1Citation, commencement, extent and interpretation

(1)

This Order may be cited as the Silicon Valley Bank UK Limited Compensation Scheme Order 2024.

(2)

This Order comes into force on the day after the day on which it is made.

(3)

This Order extends to the England and Wales, Scotland and Northern Ireland.

(4)

In this Order, “Silicon Valley Bank UK Limited” means the company incorporated on 3rd April 2020 with the company registered number 12546585.

2Determination of amount of compensation

The amount of compensation payable by the Treasury to persons who held shares in Silicon Valley Bank UK Limited immediately before those shares were transferred by the Silicon Valley Bank UK Limited Mandatory Reduction and Share Transfer Instrument 2023f1 is determined as nil.

Signature

Name

Name

Two Lords Commissioners of His Majesty’s Treasury

Date

Explanatory note

(This note is not part of the Order)

This Order makes provision about compensation arrangements in respect of the transfer of shares in Silicon Valley Bank UK Limited to HSBC UK Bank plc by virtue of the Silicon Valley Bank UK Limited Mandatory Reduction and Share Transfer Instrument 2023 (the “Transfer Instrument”).

The Transfer Instrument was made by the Bank of England on 13th March 2023 under the special resolution regime in the Banking Act 2009 (c. 1) (the “Act”). In making the Transfer Instrument, the Bank of England exercised the “private sector purchaser” stabilisation option, which enables the transfer of shares to a commercial purchaser (section 11 of the Act).

Where this stabilisation option has been exercised by the Bank of England, the Treasury is required to make provision for a compensation scheme (section 50(2) of the Act). Article 2 of this Order makes provision for a compensation scheme under which the amount of compensation payable is determined as nil.

A full impact assessment has not been produced for this instrument, as no, or no significant, impact on the private, voluntary or public sector is foreseen.